Borr Drilling Downgraded, but Offshore Bulls Still Watching Closely

Borr Drilling Limited (NYSE:BORR) is one of the best oil drilling stocks according to hedge funds, though it just got a dose of realism from analysts. On July 14, BTIG downgraded the stock from Buy to Neutral, citing ongoing softness in the offshore drilling market and continued pressure on day rates and utilization levels . That downgrade isn’t a red alert; it’s a reminder of the current offshore cycle turbulence. But BTIG still sees upside potential if utilization improves, keeping expectations tempered yet open.

Despite the downgrade, Borr’s fleet remains one of the most modern in the offshore space and fully dedicated to drilling operations. The company recently locked in multi-year contracts for several jackup rigs, which should bring some stability to cash flow. Hedge funds often track these contract awards and asset quality, and while current conditions aren't stellar, Borr’s position in the market puts it on the radar for investors betting on a recovery cycle.

Borr Drilling (NYSE:BORR) is a pure-play offshore drilling contractor headquartered in Bermuda, managing a fleet of midwater and premium jackup rigs. It focuses on contract drilling in key regions across Asia, the Middle East, and North Sea-adjacent waters.

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